Sri Lanka Telecom (SLT) estimates network damage due to tsunamis at Rs. 750 million but says it will continue to expand aggressively. Sri Lanka Telecom (SLT) estimates network damage due to tsunamis at Rs. 750 million but says it will continue to expand aggressively. SLT Chairman Anil Obeyesekere told LBR the company is not making any changes to their three-year business plan due to the tsunami setback.
The company has used microwave links to connect its affected base stations to the network but 18,000 lines have been disconnected due to damaged infrastructure.
SLT made a Rs. 2.2 billion group profit in 2003 and for the first nine months this year posted a Rs. 1.3 billion profit.
However the company says profitability next year will be affected.
SLT does not have insurance to cover network damage due to natural disasters.
The insurance reserve has only Rs. 96 million according to the 3rd quarter 2004 balance sheet, far short of the estimated damage of Rs. 750 million.
SLT also said Rs. 25 million a month in revenues will be lost due to 18,000 lines being disconnected.
The company has budgeted calls wort